The ambiguity over the US elections continued to influence investor sentiments as the race is expected to be close. Wall Street had ended the previous day with modest gains.

Traders are also concerned about a scenario where the contest could end in delayed results, and issues similar to the Bush vs Gore battle that ended in the Supreme Court in 2000.

"That is a situation global markets fear most and such uncertainty will have a big negative impact," said Cameron Peacock, market strategist at IG, told Reuters. "The best possible outcome would be for a clear and unqualified victor to emerge."

China too remained in focus. The country is set to undergo a once-in-a-decade leadership change later this week. Investors are waiting to see the new regime's policy decisions as the country's growth lags due to weak global demand.